South Korea will prepare a policy package aimed at attracting foreign tourists in the first half of the year to boost domestic spending, Vice Finance Minister Kim Byeong-hwan said on Monday.

"The number of foreign tourists visiting South Korea have been growing and the government will prepare measures to ensure the trend continues as a driver of a recovery in domestic demand," Kim said.

He noted that Seoul will host a K-beauty festival for a month in June, but did not elaborate on other policy measures.

In 2023, 11 million foreigners visited South Korea, up from 3.2 million in 2022 and 967,000 in 2021, according to the finance ministry, thanks to increases in the number of Chinese and Japanese tourists. That compares with the pre-pandemic level of 17.5 million in 2019.

In Asia's fourth-largest economy, consumer spending has been weakening due to interest rates staying at elevated levels for a prolonged period, raising concerns about the pace of economic recovery. (Reporting by Jihoon Lee Editing by Ed Davies)